A gym owner is considering opening a location on the other side of town. The new facility will cost $1.47 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $559,000 in annual sales. Variable costs are 49 percent of sales, the annual fixed costs are $90,500, and the tax rate is 34 percent. What is the operating cash flow?

Multiple Choice

• $91,151

• $219,580

• $201,929

• $334,200

• $153,419